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Novanta

Nasdaq:NOVT
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NOVT
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The last earnings update was 26 days ago. More info.


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  • Novanta has significant price volatility in the past 3 months.
NOVT Share Price and Events
7 Day Returns
0.6%
NasdaqGS:NOVT
-2.4%
US Electronic
-1.1%
US Market
1 Year Returns
57.5%
NasdaqGS:NOVT
2.8%
US Electronic
5.8%
US Market
NOVT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Novanta (NOVT) 0.6% 7.4% 45.7% 57.5% 500% 546.4%
US Electronic -2.4% -3.4% 25.2% 2.8% 56.9% 55.8%
US Market -1.1% -0.2% 19.7% 5.8% 37.9% 41.7%
1 Year Return vs Industry and Market
  • NOVT outperformed the Electronic industry which returned 2.8% over the past year.
  • NOVT outperformed the Market in United States of America which returned 5.8% over the past year.
Price Volatility
NOVT
Industry
5yr Volatility vs Market
Related Companies

NOVT Value

 Is Novanta undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Novanta to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Novanta.

NasdaqGS:NOVT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NOVT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.065 (1 + (1- 21%) (7.04%))
1.083
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.083 * 5.96%)
9.19%

Discounted Cash Flow Calculation for NasdaqGS:NOVT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Novanta is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:NOVT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.19%)
2019 87.75 Analyst x1 80.36
2020 96.91 Analyst x1 81.29
2021 104.42 Est @ 7.75% 80.22
2022 110.94 Est @ 6.24% 78.06
2023 116.70 Est @ 5.19% 75.20
2024 121.89 Est @ 4.45% 71.94
2025 126.69 Est @ 3.94% 68.48
2026 131.22 Est @ 3.57% 64.96
2027 135.58 Est @ 3.32% 61.47
2028 139.84 Est @ 3.14% 58.06
Present value of next 10 years cash flows $720.02
NasdaqGS:NOVT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $139.84 × (1 + 2.73%) ÷ (9.19% – 2.73%)
$2,224.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,224.71 ÷ (1 + 9.19%)10
$923.74
NasdaqGS:NOVT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $720.02 + $923.74
$1,643.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,643.76 / 34.90
$47.1
NasdaqGS:NOVT Discount to Share Price
Calculation Result
Value per share (USD) From above. $47.10
Current discount Discount to share price of $84.42
= -1 x ($84.42 - $47.10) / $47.10
-79.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Novanta is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Novanta's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Novanta's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NOVT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.46
NasdaqGS:NOVT Share Price ** NasdaqGS (2019-03-25) in USD $84.42
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.06x
United States of America Market PE Ratio Median Figure of 3,061 Publicly-Listed Companies 17.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Novanta.

NasdaqGS:NOVT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NOVT Share Price ÷ EPS (both in USD)

= 84.42 ÷ 1.46

57.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Novanta is overvalued based on earnings compared to the US Electronic industry average.
  • Novanta is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Novanta's expected growth come at a high price?
Raw Data
NasdaqGS:NOVT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 57.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
20.6%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,104 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

NasdaqGS:NOVT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 57.92x ÷ 20.6%

2.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Novanta is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Novanta's assets?
Raw Data
NasdaqGS:NOVT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $10.56
NasdaqGS:NOVT Share Price * NasdaqGS (2019-03-25) in USD $84.42
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.01x
United States of America Market PB Ratio Median Figure of 5,166 Publicly-Listed Companies 1.85x
NasdaqGS:NOVT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NOVT Share Price ÷ Book Value per Share (both in USD)

= 84.42 ÷ 10.56

8x

* Primary Listing of Novanta.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Novanta is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess Novanta's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Novanta has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NOVT Future Performance

 How is Novanta expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Novanta expected to grow at an attractive rate?
  • Novanta's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Novanta's earnings growth is expected to exceed the United States of America market average.
  • Novanta's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NOVT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NOVT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 20.6%
NasdaqGS:NOVT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.8%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NOVT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NOVT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 690 77 3
2019-12-31 651 64 3
NasdaqGS:NOVT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 614 90 51
2018-09-28 605 90 39
2018-06-29 591 74 18
2018-03-30 559 71 12
2017-12-31 521 63 40
2017-09-29 473 54 48
2017-06-30 425 54 55
2017-03-31 403 52 54
2016-12-31 385 48 22
2016-09-30 376 43 20
2016-07-01 371 43 19
2016-04-01 369 36 34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Novanta's earnings are expected to grow significantly at over 20% yearly.
  • Novanta's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NOVT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Novanta Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NOVT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.18 2.23 2.12 2.00
2019-12-31 1.80 1.81 1.79 2.00
NasdaqGS:NOVT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.46
2018-09-28 1.12
2018-06-29 0.51
2018-03-30 0.35
2017-12-31 1.14
2017-09-29 1.37
2017-06-30 1.59
2017-03-31 1.57
2016-12-31 0.63
2016-09-30 0.59
2016-07-01 0.56
2016-04-01 0.98

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Novanta will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Novanta's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Novanta has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NOVT Past Performance

  How has Novanta performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Novanta's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Novanta has delivered over 20% year on year earnings growth in the past 5 years.
  • Novanta's 1-year earnings growth is less than its 5-year average (27.8% vs 34.1%)
  • Novanta's earnings growth has not exceeded the US Electronic industry average in the past year (27.8% vs 64.8%).
Earnings and Revenue History
Novanta's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Novanta Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NOVT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 614.34 50.89 115.95 51.02
2018-09-28 605.08 39.17 115.35 49.54
2018-06-29 590.58 17.69 113.79 47.99
2018-03-30 559.28 12.07 108.37 44.45
2017-12-31 521.29 39.81 101.65 41.67
2017-09-29 473.25 47.64 93.61 37.85
2017-06-30 424.78 55.16 85.69 34.15
2017-03-31 403.42 54.35 82.08 33.17
2016-12-31 384.76 22.00 81.30 32.00
2016-09-30 376.10 20.35 80.14 31.32
2016-07-01 370.54 19.45 80.44 31.06
2016-04-01 369.30 34.09 81.17 30.88
2015-12-31 373.60 35.63 82.05 31.04
2015-10-02 377.39 1.24 84.81 31.59
2015-07-03 379.78 -0.21 86.34 31.63
2015-04-03 380.19 -16.32 86.83 31.31
2014-12-31 364.71 -16.92 84.38 28.95
2014-09-26 352.91 16.09 81.81 26.94
2014-06-27 338.11 13.23 79.30 25.24
2014-03-28 320.97 11.09 77.27 23.83
2013-12-31 316.91 9.96 76.34 23.79
2013-09-27 301.11 20.12 73.48 23.42
2013-06-28 290.77 19.90 70.60 22.94
2013-03-29 281.38 23.09 68.07 22.44
2012-12-31 243.80 28.26 59.71 18.53
2012-09-28 270.57 10.17 65.01 22.45
2012-06-29 279.75 15.49 65.52 23.08
2012-03-30 291.98 17.95 67.31 23.35

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Novanta has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Novanta used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • Novanta has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Novanta's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Novanta has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NOVT Health

 How is Novanta's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Novanta's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Novanta is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Novanta's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Novanta's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Novanta Company Filings, last reported 2 months ago.

NasdaqGS:NOVT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 368.26 207.38 82.04
2018-09-28 359.68 256.42 111.81
2018-06-29 375.97 237.43 107.26
2018-03-30 373.53 233.22 111.13
2017-12-31 358.47 234.62 100.06
2017-09-29 345.99 251.10 92.15
2017-06-30 331.90 119.45 89.13
2017-03-31 316.29 126.24 80.01
2016-12-31 258.87 86.03 68.11
2016-09-30 257.20 88.03 64.74
2016-07-01 249.59 95.13 60.50
2016-04-01 247.22 103.11 67.89
2015-12-31 244.70 104.98 59.96
2015-10-02 239.98 116.56 80.09
2015-07-03 234.59 125.52 81.05
2015-04-03 211.28 132.58 47.54
2014-12-31 211.25 121.88 51.15
2014-09-26 248.78 130.70 53.55
2014-06-27 246.50 147.84 45.01
2014-03-28 243.67 136.63 31.74
2013-12-31 242.40 71.50 60.98
2013-09-27 233.27 78.38 53.69
2013-06-28 226.83 95.25 52.06
2013-03-29 226.48 103.13 36.34
2012-12-31 228.21 50.00 65.79
2012-09-28 219.09 47.50 52.86
2012-06-29 218.28 53.00 55.76
2012-03-30 213.36 55.50 50.36
  • Novanta's level of debt (56.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29.8% vs 56.3% today).
  • Debt is well covered by operating cash flow (43.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess Novanta's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Novanta has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NOVT Dividends

 What is Novanta's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Novanta dividends.
If you bought $2,000 of Novanta shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Novanta's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Novanta's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NOVT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NOVT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Novanta has not reported any payouts.
  • Unable to verify if Novanta's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Novanta's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Novanta has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Novanta's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Novanta afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Novanta has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NOVT Management

 What is the CEO of Novanta's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matthijs Glastra
COMPENSATION $3,629,499
AGE 49
TENURE AS CEO 2.5 years
CEO Bio

Mr. Matthijs Glastra has been the Chief Executive Officer and Director of Novanta Inc. (alternate name: GSI Group Inc.) since September 1, 2016 and was its Executive Officer since September 2012. Mr. Glastra served as its Chief Operating Officer from February 26, 2015 to September 1, 2016. Mr. Glastra served as the Chief Executive Officer of Vari-Lite, Inc. He served as Group President of Medical Technologies and Laser Products at GSI Group Inc. since November 2013 until February 26, 2015 and served as its Group President of Laser Products October 15, 2012 and also served as its Corporate Officer since September 6, 2012. He served as an Executive Vice President of Worldwide Operations at Philips LumiLeds Lighting Company LLC since 2007. In 2003, he started in the Lighting division as the Senior Director of Marketing & Sales for Special Lighting and then returned to the Netherlands to lead Philips' LCD Backlighting business. Mr. Glastra holds degrees in Applied Physics and Electronics at Delft University of Technology in The Netherlands and Grande Ecole Supérieure de Physiques et Chimie Industrielles in Paris, France and an MBA at INSEAD, the leading European Business School.

CEO Compensation
  • Matthijs's compensation has increased by more than 20% in the past year.
  • Matthijs's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Novanta management team in years:

2.5
Average Tenure
49
Average Age
  • The tenure for the Novanta management team is about average.
Management Team

Matthijs Glastra

TITLE
CEO & Director
COMPENSATION
$4M
AGE
49
TENURE
2.5 yrs

Robert Buckley

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
44
TENURE
8 yrs

Brian Young

TITLE
Chief Human Resources Officer
COMPENSATION
$905K
AGE
49
TENURE
2.3 yrs

Peter Chang

TITLE
VP, Corporate Controller & Chief Accounting Officer
AGE
53
TENURE
7.6 yrs

Heinrich Dreyer

TITLE
Group President of Minimally Invasive Surgery
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the Novanta board of directors in years:

6.8
Average Tenure
56
Average Age
  • The tenure for the Novanta board of directors is about average.
Board of Directors

Stephen Bershad

TITLE
Chairman
COMPENSATION
$250K
AGE
76
TENURE
8.7 yrs

Matthijs Glastra

TITLE
CEO & Director
COMPENSATION
$4M
AGE
49
TENURE
2.5 yrs

Ira Lamel

TITLE
Independent Director
COMPENSATION
$140K
AGE
70
TENURE
8.7 yrs

Thomas Secor

TITLE
Independent Director
COMPENSATION
$125K
AGE
47
TENURE
6.8 yrs

Dominic Romeo

TITLE
Independent Director
COMPENSATION
$125K
AGE
58
TENURE
6.8 yrs

Brian King

TITLE
Independent Director
COMPENSATION
$81K
AGE
51
TENURE
1.8 yrs

Lonny Carpenter

TITLE
Director
AGE
56
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Nov 18 Sell Stephen Bershad Individual 15. Nov 18 15. Nov 18 -500,000 $68.15 $-34,075,000
20. Aug 18 Sell Peter Chang Individual 17. Aug 18 17. Aug 18 -3,680 $70.63 $-259,904
X
Management checks
We assess Novanta's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Novanta has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NOVT News

Simply Wall St News

Have Insiders Been Selling Novanta Inc. (NASDAQ:NOVT) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Novanta Inc. … That means that an insider was selling shares at slightly below the current price (US$83.03). … Over the last year we saw more insider selling of Novanta shares, than buying

Simply Wall St -

Did Novanta Inc.'s (NASDAQ:NOVT) Recent Earnings Growth Beat The Trend?

Investors with a long-term horizong may find it valuable to assess Novanta Inc.'s (NASDAQ:NOVT) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … NOVT's trailing twelve-month earnings (from 31 December 2018) of US$51m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 34%, indicating the rate at which NOVT is growing has slowed down

Simply Wall St -

What Does Novanta Inc.'s (NASDAQ:NOVT) Share Price Indicate?

saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. … As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Novanta’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Novanta Inc. (NASDAQ:NOVT): Time For A Financial Health Check

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Novanta Inc. … (NASDAQ:NOVT), with a market cap of US$2.4b, often get neglected by retail investors. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories.

Simply Wall St -

Novanta Inc. (NASDAQ:NOVT) Delivered A Better ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Novanta has a return on equity of 14% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Insiders Selling Novanta Inc. (NASDAQ:NOVT) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Novanta Inc. … In the last twelve months, the biggest single sale by an insider was when Chairman Stephen Bershad sold US$34m worth of shares at a price of US$68.15 per share. … Over the last year, we note insiders sold 503.68k shares worth US$34m.

Simply Wall St -

What Should You Know About Novanta Inc's (NASDAQ:NOVT) Capital Returns?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Novanta’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

What Does Novanta Inc's (NASDAQ:NOVT) P/E Ratio Tell You?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Novanta Inc's (NASDAQ:NOVT) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Novanta Inc (NASDAQ:NOVT): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like Novanta Inc (NASDAQ:NOVT), with a market cap of US$2.0b. … However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is

Simply Wall St -

Is Novanta Inc's (NASDAQ:NOVT) Balance Sheet A Threat To Its Future?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Novanta Inc (NASDAQ:NOVT), with a market cap of US$2.28b, are often out of the spotlight. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … NOVT’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns.

Simply Wall St -

NOVT Company Info

Description

Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company’s Photonics segment offers photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. Its Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless imaging and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The company’s Precision Motion segment offers optical and inductive encoders, precision motors, motion control sub-assemblies, air bearings, air bearing spindles, and precision machined components. It sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Lincoln Laser, ExoTec Precision, Synrad, Laser Quantum, WOM, NDS, NDSsi, Reach Technology, JADAK, ThingMagic, Photo Research, General Scanning, Celera Motion, MicroE, Applimotion, Zettlex, and Westwind brands. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.

Details
Name: Novanta Inc.
NOVT
Exchange: NasdaqGS
Founded: 1968
$2,946,308,567
34,900,599
Website: http://www.novanta.com
Address: Novanta Inc.
125 Middlesex Turnpike,
Bedford,
Massachusetts, 01730,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NOVT Common Shares Nasdaq Global Select US USD 28. Sep 1995
DB 1GSN Common Shares Deutsche Boerse AG DE EUR 28. Sep 1995
LSE 0VAG Common Shares London Stock Exchange GB USD 28. Sep 1995
Number of employees
Current staff
Staff numbers
2,133
Novanta employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 23:36
End of day share price update: 2019/03/25 00:00
Last estimates confirmation: 2019/02/28
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.